Mix active dry yeast with warm milk, 1 teaspoon sugar and 1 teaspoon flour. Cover with cloth and leave it for about 10 minutes.
In a large bowl mix flour, sugar and salt. Put active yeast that we just made. Add egg one at a time and mix it with wooden spatula. Knead the dough by hand for about 10 minutes
Add butter gradually and knead by hand for 10 minutes. The dough needs to be smooth and elastic.
Cover the dough with cloth and leave it for 1 hour, the dough has to grow.
After 1 hour take out the dough and shape a square for about 1/2 inch high. Dust with flour if needed.
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Cut circles with cutter or glass (diameter 3.5"). Put jam into each circle and close, shape a ball.
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Put each ball onto paper liner and leave it for 20 minutes. Brush with egg.
Bake at 350F for about 13-17 minutes. Let it cool for 10 minutes and then decorate.